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Saying “I can’t”, years after saying “I do” is a painful experience for many couples, whose marriage (or civil partnership) have broken down.

A change in the law last year brought in the “No Fault Divorce”. This was a relief for many couples who wanted an amicable divorce without apportioning blame. No more arguing about whether that infidelity led to the unreasonable behaviour or the other way around.

However, being able to amicably separate your lives, does not also mean that you can also amicably separate your finances.

Opting for a no-fault divorce merely means that a couple can dissolve their marriage. It does not determine what a fair distribution of joint assets would look like, because the grounds for a divorce are completely separate to the principles determining entitlement for a post-marital financial settlement.

A fair settlement doesn't always mean an equal split, but it is based upon both parties' needs and contributions. Whilst the starting point for every divorce settlement is 50/50, this percentage split can be altered to ensure both parties are left on a similar financial footing.

With no set rules or calculations used to determine the fair split of a divorce, a range of factors are considered to ensure the needs of both parties are met. These issues include their standard of living prior to separating, their ages, any physical or mental disabilities, and any contributions to the family made by each party, as well as their income, housing, and resources.

Sometimes a financial settlement can be quickly agreed upon without the need for the Court’s involvement. However, if there is a lot of inherited family wealth tied up in properties, or investments, pensions, business assets and more, without a Financial Order in place, one spouse could stake a claim for a percentage of those assets years after the divorce, which would create uncertainty and risk for the other.

If you have a lot to lose as a result of your divorce, even an amicable one, it’s strongly advised to get your finances and assets sorted as early as you can in the process. Alternatively, if you put your career on hold to be the homemaker, and look after the children, whilst your partner built their career and a pension pot, the law is clear that those assets should be shared.

Following a divorce, either party can still make financial claims against each other for:

• Capital provision
• Spousal maintenance
• Pension sharing

Lump sum payments can be sought or requests for property to be sold or for ownership to be transferred can be made. Plus, couples can seek ongoing financial provision to meet their personal needs, and even seek a share of any business or pension assets.

Your first port of call should always be to try and agree how you will split your assets with your former spouse. This is the path of least resistance.

But it is important that separating couples do not forget about the financial settlements when going through a no-fault divorce, and that both parties are aware of what they are entitled to, because if a person remarries before formally resolving the finances of their previous marriage, they cannot apply to court later to resolve those finances.

Once an agreement has been made, you will need a Financial Order to bring what you have agreed into effect. Until that Financial Order is in place, any financial claims will remain open.

Finally, if your former spouse was written into your will, you will need to have a new one prepared. Plus, there might be tax issues that you will need to deal with as a consequence of your divorce, for which you should seek professional advice from an accountant or tax specialist before your divorce is finalised, and prior to any final decisions on your finances and assets.

Our family team here at Curwens can fully support you through this difficult and emotionally challenging time. We can support you through the no fault divorce process, through agreeing the children and family arrangements and to reaching a financial settlement.

by Vijaya Sumputh, Head of Family Law Department, Curwens LLP